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    London Jets, RFM Analysis - Group 9, Section B Current Scenario

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    Harshita Jha
    The London Jets are struggling with low ticket sales and revenue. An RFM analysis of 3,000 customers identified the 90 top scoring customers who purchase most recently, frequently, and spend the most money. These top customers are predominantly male, between ages 26-45, and not fan club members. The analysis recommends increasing fan club incentives targeting men aged 25-45, advertising in magazines popular with these customers, strengthening business relationships, and offering ticket packages to increase spending per customer.

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    London Jets, RFM Analysis - Group 9, Section B Current Scenario

    Uploaded by

    Harshita Jha
    1K views3 pages
    The London Jets are struggling with low ticket sales and revenue. An RFM analysis of 3,000 customers identified the 90 top scoring customers who purchase most recently, frequently, and spend the most money. These top customers are predominantly male, between ages 26-45, and not fan club members. The analysis recommends increasing fan club incentives targeting men aged 25-45, advertising in magazines popular with these customers, strengthening business relationships, and offering ticket packages to increase spending per customer.

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    Group 9_London Jets

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    The London Jets are struggling with low ticket sales and revenue. An RFM analysis of 3,000 customers identified the 90 top scoring customers who purchase most recently, frequently, and spend the most money. These top customers are predominantly male, between ages 26-45, and not fan club members. The analysis recommends increasing fan club incentives targeting men aged 25-45, advertising in magazines popular with these customers, strengthening business relationships, and offering ticket packages to increase spending per customer.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views3 pages

    London Jets, RFM Analysis - Group 9, Section B Current Scenario

    Uploaded by

    Harshita Jha
    The London Jets are struggling with low ticket sales and revenue. An RFM analysis of 3,000 customers identified the 90 top scoring customers who purchase most recently, frequently, and spend the most money. These top customers are predominantly male, between ages 26-45, and not fan club members. The analysis recommends increasing fan club incentives targeting men aged 25-45, advertising in magazines popular with these customers, strengthening business relationships, and offering ticket packages to increase spending per customer.

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    London Jets, RFM Analysis - Group 9, Section B

    Current Scenario
    Chris Harri, the Marketing Manager of London Jets, is feeling the pressure as:

    1. Management planning to sell the Hockey franchise due to of poor performance - low
    sales & revenue
    2. Saw mediocre results from a high budget ad campaign

    Chris has been tasked with increasing attendance and implementing customer retention
    programs in order to increase ticket sales and overall revenue.

    Obstacles:

    1. Improper customer segmentation


    2. Inadequacy of customer data
    3. Customer retention decreasing Y-o-Y

    Solution
    R – Recency, F – Frequency, M - Monetary
    The basic premise of RFM is that customers who have purchased more recently, more
    frequently and have spent more with the company are the best prospects for future direct
    marketing campaigns. RFM analysis helps marketers visualize and quickly identify important
    customer segments.

    Analysis:
    We recommend that the London Jets can achieve their goals through effective target marketing
    to the most valuable customer segment. For this, we performed the following analysis.

    ● Business customers constitute 18% of all customers


    ● The ratio of male of female customers is 1.94:1
    ● 40% of customers purchased tickets in 2001
    ● Only 3% of the customers are fan club members
    ● Out of 3000 customers, 1805 attended only 1-3 games per year

    RFM Analysis of 3000 customers:


    ● 90 fans score 5’s in Recency, Frequency, and Monetary
    ● 147 fans score the lowest on all three parameters of the analysis

    Target profile of the 90 top scorers (includes undisclosed)

    ● Type: 63% Male, 20% Female, 17% Business


    ● Age: Median Age: 36.5 Years
    ● Marital Status: 45% Single, 55% Married
    ● Income: Average Income: $49,943
    ● 17% are Fan Club Members
    ● Vehicle Owners: 85% Own Vehicles
    ● 39% subscribe to magazines
    ● Nearly twice as many men attend games than women
    ● Fan Club Members continue to outspend non-members year over year

    Conclusion:
    Based on the RFM Analysis, the most desirable customers are the predominantly male, and
    noticeably, not Fan Club Members (only 17%). The highest spenders belong to the age group
    26-45 years while the lowest spenders are under 25 and over 55.
    Fan club members attend 55% more games and spend 34% more on average than non-
    members.

    Recommendation:
    ● Increase fan club members incentives & give perks that are attractive for men between
    the age 25-45 as they spend more and attend more games
    ● Increase advertisements in magazines that are popular among the target profile
    ● Strengthen relationships with businesses through incentives or specials
    ● Selling special 2 and 4 packs to increase the number of seats per customer per game

    Gender 63% Male


    20% Female
    17% Business

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